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Payroll has the potential to create real headaches for small businesses. There are so many reports, updates tax law changes, and records to deal with that it’s easy to get overwhelmed.

Payroll outsourcing can remove the burden of paperwork and bureaucracy from your business so you can focus on what matters.

So, payroll outsourcing is the best solution for many businesses, but how much does payroll outsourcing cost?

In this comprehensive guide, we will break down the payroll service cost for small businesses and explain what goes into the cost.

By understanding what drives the price tag, you will be able to make a more informed decision about whether or not this service is right for your business.

How Much Does Payroll Services Cost?

The cost of payroll services is anywhere between $15 to $200 per month. However, the cost can vary based on a number of different factors. Some of these factors include:

  • The size and complexity of the business
  • The number of employees
  • The type of payroll service that is needed (e.g., tax filing, direct deposit, time tracking, etc.)
  • The features and level of customization required
  • Hidden costs like software fees or setup fees

It is important to note that there is a base cost per month, but there may also be additional charges depending on the number of employees and others services need.

The cost of each employee’s payroll ranges between $2 to $7 per person per month depending on the services needed. So, if you have 10 employees, you are looking at somewhere between $20 to $70.

Cost Of Payroll Per Employee

On average the cost per employee per month ranges from $2 to $7 per individual but it can vary based on the provider you chose.

For example, if you need to include direct deposit and other features, then the cost per employee would be on the higher end. But If you only need basic payroll processing, then the cost will be much more affordable and likely to come in at the lower end of the spectrum.

It is important to note that the cost per employee does not include additional costs for filing taxes, making payments, and other administrative tasks.

Average Payroll Cost Per Month

Payroll services can range from $75 per month to $100 per month for firms with 10 employees, but this obviously depends on the specifics of each company’s needs.

Average Payroll Cost Per Month

This is simply for the very minimum, so things like tax preparation and compliance assistance may cost more.

Payroll Service Cost Comparison: Payroll Services Pricing

What Are the Different Types of Payroll Outsourcing Services?

There is a wide variety of choice available when it comes to payroll outsourcing services. Payroll checks, tax filing, and employee record keeping are often included in even the most fundamental of packages.

Additional features that may be available with more sophisticated services include integrated time tracking and attendance monitoring, direct deposit services, and employee self-service portals.

The price of these services will change depending on the provider that you go with as well as the specific kind of service that you require.

It is essential to look into a variety of service providers and examine their various offerings before settling on the one that will best serve your company.

Is A Payroll Service Worth It?

Yes, and why shouldn’t we?

I would suggest that any business that is unable to manage its payroll in-house due to financial constraints or a lack of available time and resources investigate the possibility of using a payroll outsourcing provider.

It can help your company save money in the long term by assisting you in avoiding mistakes that are financially detrimental and freeing up your time to concentrate on other elements of your company’s operations.

Additionally, it can assist you in keeping up with ever-evolving requirements and ensuring that your employees are paid correctly, on time, and in accordance with applicable laws and regulations.

In general, outsourcing payroll can be a wonderful method to decrease the stress and workload involved with processing payroll internally, while also saving time and money in the process.

Here is a look at what users comment on Payroll outsourcing on Quora.

FAQs

How Much Do Accountants Charge For Payroll Services

The price that you pay for payroll services from an accountant can range anywhere from $100 to $500 each month, on average, depending on the size of your company and the particular service that you require.

Do I Need To Pay For Software?

No, most payroll outsourcing services will take care of all the software setup for you. You will just need to provide information about your business and employees, and they will take care of the rest.

How Much Should I Pay For Payroll?

It depends on your company size but to get better deals, you should compare multiple payroll providers and find the one that will provide you with the best pricing and services.

What Is The Easiest Way To Do Payroll For A Small Business?

Payroll management is made much easier for small businesses that use payroll software created exclusively for that purpose. The program will automate a large chunk of the process, making it much easier for you to keep up with ever-changing requirements and pay your staff appropriately.

Furthermore, some service providers provide a white glove solution that simplifies payroll handling for small businesses even further. The software will be installed as part of this service, your personnel will be trained, and they will give ongoing support.

Are Payroll Services Expensive?

To the contrary, payroll services need not break the bank. As was previously noted, several service providers provide low-cost or free starter plans.

It’s usually a good idea to look around and see what other companies may offer before committing to one.

Can I write off payroll service fees?

Yes, you can write off the fees associated with payroll services. The exact amount and type of deduction will depend on your business, so it’s best to consult a tax professional to determine the best course of action.

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